Tourism KZN’s second COVID-19 online workshop on June 10 put emphasis on strategies for viable business recovery and the best practices.
Barry Clemens, V Resorts director Sub-Saharan Africa, one of the panellists, said tourism businesses needed to take a hard look at their financial principles. “In the hospitality trade, we have become so desperate for business that we may drop our rates, but if we do, we lose price elasticity and the ability to come back to original rates,” said Barry.
When cash gets tight, a common practice by businesses (of which he disapproves), is stopping sales and marketing activity to save money. “People will not know you, won’t come to you, and you won’t have revenue coming through,” he said.
Barry believes COVID-19 has changed travel into more of a luxury item, in which clients require a fuller experience. He advises the industry to take advantage of that. “Instead of discounting your prices, rather keep them the same and add value to the experience. Maybe start offering your clients a free airport pick-up in your inclusive price.”
The change in customer requirements is the perfect opportunity to consider changing the product or service that travel or tourism businesses offer, said panellist, Thuba Sibisi, enterprise development manager of Black Umbrellas.
Thuba said she anticipated leisure and personal travel more likely to be the first sector to resume when tourism opened up again. Corporate travel companies, for instance, might have to consider changing their business models, she added.
